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NEW DELHI: Infosys has been witnessing an exodus of its senior-level executives in the past few months and V Balakrishnan's exit marks eighth big exit in a matter of just seven months; and this may pose a medium-term concern for the IT major.

The exits come amidst organizational restructuring that Narayana Murthy is overseeing after returning to revive the sagging fortunes of the company in June.

Ankita Somani, Research Analyst, IT, at Angel Broking, who has a ‘neutral’ rating on the stock is of the view that the exit of Balakrishnan will not make any material impact at a business level as he was not heading a very big chunk of the company’s revenues but the development does indicate that there is a severe management transition happening in the company.

Infosys on Friday announced the resignation of V Balakrishnan, who was widely tipped to be in the race for becoming the company's next chief executive officer when incumbent SD Shibulal retires in 2015.

The resignation is effective December 31, 2013. Balakrishnan headed Infosys BPO, Finacle and India Business Unit.

“Though the impact of top management resignations at Infosys will not immediately make an impact to the topline of Infosys, however, it may have some effect over a medium-term,” she added.

“Senior level exits remain a concern for the company and the Infosys stock may see some correction next week starting Monday following the news,” Somani concludes.

The stock rose to fresh 52-week high of Rs 3569.90 on Friday before closing 1.08 per cent higher at Rs 3552.30.

Infosys shares have been in some sort of an uptrend so far in the year 2013. The stock has managed to rally a little over 50 per cent in the same period.

It is trading well over 3 year high and has also became the sixth Indian company to cross the Rs 2 lakh-crore market capitalization on Thursday.

Most analysts say re-rating of the Infosys stock considering its valuations are at a steep 20 per cent discount to TCS based on forward P/E multiples, ET reported.

Of the 70 broking firms which are tracking Infosys, 42 had 'Buy' recommendations while the number of 'Hold' and 'Sell' recommendations were 19 and 9, respectively.

With all the optimism around some experts do believe that IT stocks may well come under some bit of correction as dramatic pick up in discretionary in IT spend is not likely to happen in near future as compared to what market is factoring in.

Saurabh Mukherjea, CEO, Institutional Equities, Ambit Capital is of the view that it is very difficult to argue a strong bull case for IT given the valuations of the sector and given our perspective that growth and demand for the west would not really pick up in the manner the market is expecting.

“Earlier in the week, Accenture gave its forward guidance and they do not see a dramatic pick up in discretionary IT spend and if a leading player like Accenture does not see a pick-up in discretionary IT spend,” said Mukherjea.

Mukherjea concludes by saying that he does not quite understand where the markets optimism on a company like Infosys is coming through. Both IT and pharma are sectors which have reached a high watermark and investors should book profits in both these sectors.